When you’re a landlord, you have a vision of a paradise that may differ from others’. In a landlord’s perfect world, every tenant is trustworthy and clean, and every neighborhood is free of crime. However, this vision is a bit unrealistic, which is why our Santa Monica insurance center recommends landlord insurance for everyone with a rental property.
Consider Every Angle
You may have purchased homeowner’s insurance on your rental property, but that doesn’t do much to factor in the existence of tenants and the complications that can arise from that. Like any other insurance, it’s important to select a personalized plan that suits your needs. Policies typically cover property damage, liability, and loss of income, with a range of additional coverage options that accommodate special circumstances, such as natural disaster insurance. It’s important to consider geographical factors, as some areas are considered to be more at-risk than others.
The most basic framework of landlord insurance starts with liability and property damage insurance. In the case when you’re renting your property, it should be covered by insurance should it befall a covered loss, such as a fire. However, as you expand your interest in insurance policies, your coverage becomes more broad, covering incidents like vandalism and other explicitly named scenarios.
Pick Your Payout
It’s a good idea to talk to your landlord insurance representative in Hawthorne, but selecting a method of payout is extremely important. Many plans have two types of payout terms: cash value versus replacement value. If you opt for a payout in cash value, which is common in more basic policies, you’ll be compensated for the current value of the damaged property, post depreciation value. However, payouts that work in terms of replacement value cover repairs as currently priced. Any repairs required are covered in today’s value, with no depreciation factored in. It’s a smart way to keep yourself in the clear.
If you have further questions about landlord insurance, or want to talk to us about a rate, visit Sully Insurance at one of our locations. We can’t wait to meet you!